1. UNIVERSITY OF ALABAMA GEORGIA STATE UNIVERSITY UNIVERSITY OF MISSOURI- UNIVERSITY OF TENNESSEE
UNIVERSITY OF ARKANSAS UNIVERSITY OF GEORGIA MISSISSIPPI STATE UNIVERSITY SOUTHERN MISSISSIPPI UNIVERSITY
CLEMSON UNIVERSITY IOWA STATE UNIVERSITY UNIVERSITY OF NEBRASKA TEXAS TECH UNIVERSITY
UNIVERSITY OF CONNECTICUT UNIVERSITY OF KANSAS OKLAHOMA STATE UNIVERSITY UTAH STATE UNIVERSITY
UNIVERSITY OF DELAWARE KANSAS STATE UNIVERSITY UNIVERSITY OF OKLAHOMA VIRGINIA COMM.TH UNIVERSITY
FLORIDA STATE UNIVERSITY UNIVERSITY OF KENTUCKY UNIVERSITY OF RHODE ISLAND VIRGINIA TECH UNIVERSITY
UNIVERSITY OF FLORIDA LOUISIANA STATE UNIVERSITY PORTLAND STATE UNIVERSITY WEST VIRGINIA UNIVERSITY
CIMBA Consortium Institute of Management and Business Analysis
International Marketing
Management
Asolo January 12th and 13th , 2006
1
2. INTERNATIONAL MARKETING
MANAGEMENT
Day 1 : Session 1 & 2 Day 2 : Session 3 & 4
Introduction and Definitions of Marketing
The process of Marketing Management Essential tools: Risk Anaysis, Montecarlo analysis,
900am Morning Class Basic tools and concepts: Sensitivity, Tornado Analysis and real Options.
Marketing MIX (the 4 ‘P’ of Marketing) International Product Launches in Europe: a real
10:30 Break Product’s life cycle case.
11:30 Case Discussion Club Med Baxter
12:30 Lunch
14:00 Afternoon Class Process of Marketing Management in depth:
Analysis of opportunities Entry Strategies: Agency, distribution, licensing, Joint
Research of target market Ventures, direct sales.
Development of strategies A framework for cooperative strategies and Joint
15:30 Break Planning, Venture design.
Implementation and control Cultural issues: ethics and compliance
How to write a solid Marketing plan
16:30 Case Discussion
Euro Disney Ital Sedia
17:30 Closeout
2
3. Working Groups
• GROUP 1 • GROUP 3
• Argentin Federica • Santato Donata
• Farronato Nicola • Simonetto Enrico
• Virago Roberta • Ronzani Roberto
• Folle Ivo • Zago Valentina
• Ceolin Angelo * • Pettenon Francesco*
• •
• GROUP 2 • GROUP 4
• Cagnin Moreno • Fiammengo Wallì
• Fiumicetti Anna • De Marchi Giovanni
• Negretto Luigi • Del Prete Enrico
• Dal Bo Peter • Baldassar Stefano*
• 3
5. 5
CIMBA Fondamenti di Marketing Management: Luigi Negri
6. What is marketing: its role in society and
corporations
• Stereotypes
• Definitions of Marketing
• Key concepts to remember when talking about
marketing
– Needs
– Products
– Value, cost and satisfaction
– Exchange, transactions
– Markets
– Corporation
– Marketing Management
6
7. What is marketing
Stereotypes
• “…Marketing is used by
corporations to create needs by
convincing consumers to buy
products they do not need…..”
• “… Marketing in a corporation is
made of all that publicity that
triggers automatic purchases of
products for which there is no
real need …”
7
8. What is marketing
Marketing definitions
• “ Marketing is the social and managerial process
through which an individual or a group can obtain the
object of their needs and desires by creating, offering
and exchanging products and values.”
• “Marketing is the managerial process through which a
corporation maximizes its sales profits in the short,
medium and long term by designing, offering and
selling its products or services.”
8
10. What is marketing
Needs
• Needs:
– A need appears when a basic necessity for human life is
not satisfied.
• Desire:
– Appears when an individual assesses a solution for the
satisfaction of a need.
• Demand:
– Is made of desires for specific products enriched by the
ability and willingness to purchase them.
10
11. What is marketing
Demand origins, an example (Angel‟s Model)
Information Process Central Control Unit
Environmental Influences
Information and
Stimulus Exposition Experience Income
Attention Evaluation Culture
Criteria
Family
Comprehension
Attitude Social Class
Retention
Physical Factors
Problem Others
Informative retroaction
Recognition
Wait
External Internal research
Research And evaluation
of alternatives
External research
Wait
and evaluation
of alternatives
Purchasing Wait
Process
Results
Post-purchase evaluation Future behavior
11
12. What is marketing
Product
• Definition: “Any thing that can be offered to
somebody to satisfy a need or a desire”.
• Product Vs. Service
• Miopia of marketing: product Vs. need
12
13. What is marketing
Value, Cost and Satisfaction
N EED RATE P R O D .A S A T IS F A C T IO N A P R O D . A P R IC E P R OD . B V A LUE - P R IC E A S A T IS F A C T IO N B P R O D . B P R IC E V A LUE - P R IC E B
OBJECTIVE 1 3 3 9 2 6
OBJECTIVE 2 5 4 20 2 10
OBJECTIVE 3 8 6 48 9 72
OBJECTIVE 4 2 3 6 2 4
83 50 33 92 80 12
• The value of a product /offer is tied up with its capacity of
meeting the objectives relative to an attempt at satisfying a need
• Each objective has got its level of priority
• Each product may give a different reaction so as to meet single
objectives
• Satisfaction relative to a product is a function of the satisfactions
relative to various objectives ranked according to their levels of
priority
• Theoretically, the product to be chosen is the one which
maximizes the SATISFACTION - PRICE difference
13
14. What is marketing
Trade and transactions
• There are 4 fundamental ways to satisfy a need:
– Self-production
– Coercion
– Begging
– Exchange
• Trade consists of an act of obtaining the product
desired by a person to whom something is offered in
exchange
• In the case of transactions , values pass between two
parties involved: actually, these are the basic units of
trade.
14
15. What is marketing
Markets
A market consists of all potential buyers who, by
sharing a particular need, might be interested in
getting involved in an exchange/ trade so as to satisfy
the said need or desire
.
ELEMENTARY SYSTEM OF MARKETING:
COMMUNICATION
GOODS AND SERVICES
SECTOR MARKET
(OF A SET OF SELLERS) (A SET OF BUYERSI)
MONEY
INFORMATION
15
16. What is marketing
FLOWSHEET OF MODERN TRADE ECONOMY
Resources Resources
MARKET of
Resources
Money Money
Levies Services
goods Money
Services, money levies
MARKET MARKET
Public
of of
Levies, money sector services
Products Consumers
Services Levies
money goods
money money
MARKET
Goods and services of Goods and servics
Intermediaries
16
17. What is marketing
Glossary
• M.S. o Market Share :
– {sales} revenue/ Total value
– Units sold/ Total units consumed
• Penetration
– Units sold/Units of market
• Gross Profit or G.P.
– GP per Unit: Unit Price - Unit Cost
– TGP: Total Net Sales – Total cost of sold units
• G.P./P indicated with GP%
– GP/Net sales
• Net profit / Pre-Tax
– G.P. – opex - overheads
• Profitability
17
18. What is marketing
Simple Exercise #1
Question 1
Total Market 2005
Units 300 M Units
Value ? M$
ASP ? $
Company A
Units Sold 180 M Units
ASP 0,3 $
Cost 0,09 $
Net Sales ? M$
Gross Profit ? M$
GP% ? %
MS% in Units ? %
MS% in Value ? %
Company B
Units Sold 120 M Units
ASP 0,25 $
Cost 0,09 $
Net Sales ? M$
Gross Profit ? M$
GP% ? %
MS% in Units ? %
18
MS% in Value ? %
19. What is marketing
Answers to Simple Exercise #1
Answer 1
Total Market 2005
Units 300 M Units
Value 84 M$
ASP 0,28 $
Company A
Units Sold 180 M Units
ASP 0,3 $
Cost 0,09 $
Net Sales 54 M$
Gross Profit 37,8 M$
GP% 70% %
MS% in Units 60% %
MS% in Value 64% %
Company B
Units Sold 120 M Units
ASP 0,25 $
Cost 0,09 $
Net Sales 30 M$
Gross Profit 19,2 M$
GP% 64% %
MS% in Units 40% % 19
MS% in Value 36% % NoB
20. What is marketing
Simple Exercise #2
Question 2
Total Market 2005 2006
Units 300 320 M Units
Value 84 ? M$
ASP 0,28 ? $
Company A
Units Sold 180 190 M Units
ASP
Cost
0,3
0,09
0,31
0,1
$
$
Which Company
Net Sales
Gross Profit
54
37,8
?
?
M$
M$
Did „better”
GP%
MS% in Units
70%
60%
?
?
%
% In 2006 ?
MS% in Value 64% ? %
Company B
Units Sold 120 130 M Units
ASP 0,25 0,28 $
Cost 0,09 0,09 $
Net Sales 30 ? M$
Gross Profit 19,2 ? M$
GP% 64% ? %
MS% in Units 40% ? %
MS% in Value 36% ? % 20
21. What is marketing
Answers to Simple Exercise #2
Answer 2
Total Market 2005 2006 Var %
Units 300 320 M Units 6,7%
Value 84 95,3 M$ 13,5%
ASP 0,28 0,30 $ 6,4%
Company A
Units Sold 180 190 M Units 5,6%
ASP 0,3 0,31 $ 3,3%
Cost 0,09 0,1 $ 11,1%
Net Sales 54 58,9 M$ 9,1%
Gross Profit 37,8 39,9 M$ 5,6%
GP% 70% 68% % -2,3
MS% in Units 60% 59% % -0,6
MS% in Value 64% 62% % -2,5
Company B
Units Sold 120 130 M Units 8,3%
ASP 0,25 0,28 $ 12,0%
Cost 0,09 0,09 $ 0,0%
Net Sales 30 36,4 M$ 21,3%
Gross Profit 19,2 24,7 M$ 28,6%
GP% 64% 68% % 3,9
MS% in Units 40% 41% % 0,6
21
MS% in Value 36% 38% % 2,5 NoB
22. What is marketing
Marketing Management
• Marketing Management is a process of planning and
realization of the project, pricing, promotion and
distribution of ideas, goods and services in order to
make trade/ exchanges which may allow to reach the
objectives of individuals and corporations
22
23. What is marketing
Marketing vs. Sales
Starting Focus of Means Targets
point attention
Concept Production Products Sale and Profits through
promotion sales volume
of
Sale
Concept Market Customer’s Coordination Profits through
needs Activities customer’s
of marketing satisfaction
Marketing
23
24. What is the process of marketing
management and how does it work
24
25. What is the process of marketing
management and how does it work
• Definition of the process of Marketing Management
• Dynamics of the process of Marketing Management
– Analysis of opportunities
– Research into target market
– Development of strategies
– Planning,
– Implementation and control
• Basic tools and concepts:
– Marketing MIX (the 4 „P‟ of Marketing)
– Product‟s life cycle
– Marketing plan
– Signs of International Marketing Management
25
26. Process of Marketing Management
Definition of the process of Marketing
Management
Analysis
The process of marketing management consists of
analyzing market opportunities, researching and Research
selecting target markets, developing marketing Strategies
strategies and planning marketing actions which
Control
eventually will have to be realized and controlled Plans
Actions
26
27. Process of Marketing Management
Analysis of •Opportunities
• 1.1 ENVIRONMENT 1.3 COMPETITORS
– 1.1.1 TECHNOLOGICAL FACTORS 1.3.1 INDUSTRY COMPETITION
– 1.1.2 POLITICAL FACTORS ENVIRONMENT (PORTER
– 1.1.3 ECONOMIC FACTORS MODEL)
– 1.1.4 REGULATORY FACTORS 1.3.1.1 POTENTIAL
– 1.1.5 SOCIAL FACTORS ENTRANTS
Analysis
1.3.1.2 BUYERS POWER
• 1.2 MARKET 1.3.1.3 SUPPLIERS
POWER research
– 1.2.1 CONSUMER MARKET AND BUYERS 1.3.1.4 PRESSURE FROM
BEHAVIOR SUBSTITUTES strategies
– 1.2.2 BUSINESS MARKET AND BUYERS 1.3.1.5 INDUSTRY RIVALRY
control
BEHAVIOR
1.3.1.6 INDUSTRY Plansi
– 1.2.3 AGGREGATE MARKET FACTORS CAPACITY
– 1.2.4 MARKET SIZE
actions
– 1.2.5 MARKET GROWT
– 1.2.6 PROD.LIFE CYCLE 1.3.2 IDENTIFYING
– 1.2.7 SALES CYCLICITY
COMPETITORS
– 1.2.8 SEASONALITY
– 1.2.9 PROFIT VARIABILITY 1.4 ORGANIZATION
• 27
•
28. Process of Marketing Management
Research of target market
• Market segmentation
• Research criteria for target market
• Selection of target market analysis
research
strategies
controls
plans
actions
28
29. Process of Marketing Management
Development of strategies
• The marketing strategy defines the logic through
which a corporation hopes to reach its objectives
on the market
Analysis
• A marketing strategy consists in making
decisions on marketing expenses, marketing-mix Research
and allotment of marketing efforts in relation to the Strategies
forecast environmental and competition conditions
control
Plans
• “Positioning” Actions
• “Differentiation”
• “Marketing MIX”
29
30. Process of Marketing Management
Planning, implementation and control
• Marketing Plan
• Project Management
– Priorities Analysis
– Milestones
–
Research
Critical paths
– Resources Strategies
– Risk management
Control
Plans
• Periodic feedback and updating of:
– plans,
Actions
– strategies.
30
31. Process of Marketing Management
Marketing-MIX
Marketing Mix
• Marketing MIX consists of marketing variables which can be managed with in order to reach
the objective pre-defined in the field of the target market.
• The four “P”s of marketing:
– Product
– Price
– Place
– Promotion
P roduct
Price MKTG
MIX
Place
Promotion
31
32. Process of Marketing Management
Marketing-MIX
PRICE
• The role of Price
• How to decide on the price
32
33. Process of Marketing Management
IMarketing-MIX
The Role of Price
– Coverage of costs - • P>C always ?
>profit • What is positioning ?
– Variable of positioning • Sellers, agents, resellers,
– Incentive for distribution single agencies
channels • multiple agencies.
– Barrier/Entrance door • Who can enter ?
Q
– Demand manager Q =
f(P)
33
P
34. Process of Marketing Management
Marketing-MIX
How to decide on the Price
• COST BASED
• P=C+D
• Break-even: Revenue = Q*(P-Var.Cost)- Fixed Costs
• Target Return: P = Target / Q
• COMPETITOR BASED
• Market structure
• Price leadership
34
35. Process of Marketing Management
Marketing-MIX
How to decide on the Price (cont.)
• DEMAND BASED
Demand Backward
Marginal Cost=Marginal Revenue
Elasticity Estimation
Test Marketing
Consumer Survey
Awareness
Market Structure
Product Importance
• NEW PRODUCT
– Penetration
– Skimming
• PRODUCT LINE STRATEGY
– Consistency
– Cross-elasticity
35
36. Il Processo di Marketing Management
Il Marketing-MIX
How to choose the price (cont.)
36
37. Il Processo di Marketing Management
Il Marketing-MIX
How to choose the price (cont.)
37
38. Il Processo di Marketing Management
Il Marketing-MIX
Penetration and Pricing
Fenwal Penetration
MS% Penetration Vs. Pricing
120%
100%
80%
60%
40%
20%
0%
12
16
20
24
28
32
36
40
44
48
52
56
0
4
8
-20%
ASP in US$
38
39. Il Processo di Marketing Management
Il Marketing-MIX
Pricing Sensitivity Milestones
Penetration P1 -> From Customer Interviews
Rate % P2-> Price of Cheapest Substitute
P3-> Price of Expens. Substitute
P4-> Price of Competition
P1 P2 P4
P3 39
40. Process of Marketing Management
Marketing-MIX
Price Setting and Key Compromises
N = number of Units Sold
S = Sales = P*N
GP = P- C
GP% = (P-C)/P
TGP= GP * N
GP%
C
N
P N
P N C TGP
S
40
NoB
41. Il Processo di Marketing Management
Il Marketing-MIX Total Profit: Price or M.Share ?
MS% GP/Unit
120%
8
100%
6
80%
4
60% MS%
2 GP/Unit
40%
0
20%
-2 1 2 3 4 5 6 7 8 9 10
0%
1 2 3 4 5 6 7 8 9 10 -4
Price Price
Total GP
1,5
1
0,5
0
-0,5 1 2 3 4 5 6 7 8 9 10 Total GP
-1
-1,5
-2
-2,5
41
42. Process of Marketing Management
IMarketing-MIX
Lessons Learned on Price Setting
1. There is always time to decrease prices, while price
increases are difficult.
2. Never agree on a price without agreeing on the
payments terms.
3. Never agree on price without agreeing on the
exchange rate.
4. Never be light while discounting:
1. a 5% Price decrease on a 50% GP Product causes a 10%
Profit decrease
2. while on a 30% GP Product causes a 16% profit decrease!!
5. Keep Price as LAST item to be negotiated always!.
42
NoB
43. Process of Marketing Management
IMarketing-MIX
Exercise on Price Setting
– Calculate the cost-based price of a bottle of water that
cost (COGS) 0,2$ in order to obtain 32% GP.
– Perform a decision analysis for price setting of an
highly innovative product balancing the needs of high
profit, fast MS% penetration and the maintenence of
high quality product.
Q
43
0.294
P
44. Il Processo di Marketing Management
Il Marketing-MIX
PROMOTION
44
45. Il Processo di Marketing Management
Il Marketing-MIX
PROMOTION
• MAIN GOALS:
– INFORM
– PERSUADE
– REMIND
•
• MAIN METHODS:
– ADVERTISING
– PERSONAL SELLING
– SALES PROMOTION
– Other PUBLICITY
45
46. Process of Marketing Management
Marketing-MIX
PROMOTION
• PROMOTIONAL BLEND
• Depends on:
– Product type
– Corporate and market size
– Maturity stage in the life cycle of a product
– INTRODUCTION: Inform, stimulate primary demand
– GROWTH: Persuade, Stimulate Selective demand.
– MATURITY: Positioning, Persuade, Remind, Inform, New
users
– DECLINE: Withdraw support not necessarily from channel
46
47. Process of Marketing Management
Marketing-MIX
How to develop an advertising campaign:
Fundamental parts
• Marketing targets • Creative strategy: what to say
in relation to research and
• Increase in consumption
targets.
– Increase in MS
• Creative execution:
– Development of “brand loyalty”
– How to say it
– Generate „trials‟
– How to draw attention
– Improve relations with distributors
– Maintain attention
• Advertising targets
– Reach the targets
– Definition of audience
– Be „legal‟
– Definition of timelines
– Be „moral‟
– Specific targets
– Be „ethical‟
– Level of penetration
• Pretext
• Advertising Budget
• Strategy of the mass media
– Report with sales fcst
– ROI approach • Measure the effectiveness
– Marginal benefit
– “all you can afford”
– Target-tailored 47
48. Process of Marketing Management
Marketing-MIX
Evaluation of communication agencies and relations
with the media
• Understanding of the targets • Make use of agencies for
• Capacity of critical consolidating personal ties
interpretation of the targets with the journalists of interest
and of making valid • Cherish relations with
proposals journalists on a regular base
• Orientation towards the result
- Increase in MS
– Development of “brand
loyalty”
– Generate „trials‟
– Improve relations with
distributors
• Capacity of transparent
estimation
• Historical reports with the
media
• Capacity of lobbing
48
49. Process of Marketing Management
IMarketing-MIX
Exercise on Promotion:
How much should we spend in Promotion?
– Choose (O1,O2 or O3) the maximum amount of
promotional expenses for the below two cases of a
product with a MS%/Opex curve as following:
– Make and Justify your choice using Decision Analysis
MS% MS%
O1 O2 O3 Promotional O1 O2 O3 Promotional
Expenses (Opex) Expenses (Opex)
49
50. Process of Marketing Management
Marketing-MIX
PLACE
• Options for sale:
– Direct sellers
• Incentive schedules
• Formation
• Training
– Resellers
• Negotiations on “transfer prices”
• Sharing of strategies
• Contractual Size/Power
– Agencies
• Reference strategy for the commissions (sales Vs. profit)
• Coherence on the territory
– Others
• E-business
• Mailing
50
51. Process of Marketing Management
Marketing-MIX Channels for Consumer Products
Direct Retailer Wholesaler Agent/Broker
Channel Channel Channel Channel
Producer Producer Producer Producer
Agents or
Brokers
Wholesalers Wholesalers
Retailers Retailers Retailers
Consumers Consumers Consumers Consumers
51
52. Process of Marketing Management
Marketing-MIX
Channels for Business-to-Business Products
Direct Industrial Agent/Broker Agent/Broker Direct
Channel Distributor Channel Industrial Channel
Channel
Producer Producer Producer Producer Producer
Agents or Agents or
Brokers Brokers
Industrial Industrial
Distributor Distributor
Industrial Industrial Industrial Industrial Government
User User User User Buyer
52
53. Process of Marketing Management
Marketing-MIX
Lessons Learned on Distributor management
1. Make sure you understand the cost structure of your
distributors in order to:
1. Let them enjoy an actual margin that make your product
attractive compared to other opportunities.
2. Make sure that they do not take too much of your margin.
2. Have clear exit clauses in the contract.
3. Ensure that you have access to customer and to
sensitive marketing information during the execution
of the contract.
4. Never let your distributor be your only choice in a
Country: keep good relationship with other
distributors and maintain your negotiation power.
5. Never give to distributors to control exclusively the
Price to end-customers. NoB 53
54. Process of Marketing Management
Marketing-MIX
PRODUCT
• The role of the products •Importance of the products
• CASH FLOW
• SKU (Inventory)
• COMPANY IMAGE
• OVERHEAD CONTRIBUTION • MANAGEMENT TIME
• SHARED ECONOMIES • MARKETING SUPPORT
• PERSONNEL SUPPORT • ADMINISTRATIVE
• LINE COMPLETENESS
• TEMPORAL DEMAND ADJUSTMENT• EXPOSURE / RISK
• DIVERSIFY RISK • INVESTMENT
• DEFENSIVE POSTURE • BARRIERS TO EXIT
• DEALERS SUPPORT
• FLEXIBILITY
• SHELF SPACE
• PROFIT
• BARRIER TO ENTRY
• COMPETITIVE MESSAGE
• FLEXIBILITY
54
55. Process of Marketing Management
Marketing-MIX
Why new PRODUCTs fail?
1. An high level executive might push a favorite idea in
spite of negative market research findings.
2. The idea is good , but the market size is
overestimated.
3. The actual product is not well designed.
4. The new product is not correctly positioned in the
market, not advertised effectively, or overpriced.
5. Development costs are higher than expected.
6. Competitiors fight back harder than expected.
NoB 55
56. Process of Marketing Management
Marketing-MIX
Factors Influencing Adoption Process
1. People differ it their rediness to try new
Products
2. Personal – Reciprocal Influence
3. The type of Innovation:
1. Relative Advantage over existing products
% of
2. Compatibility Customers
34% 34%
3. Complexity Early Majority Late Majority
4. Divisibility 13,5%
Early
Adopters 16%
1,5% Laggards
Innovators
Time
56
NoB
57. Process of Marketing Management PRODUCT
Marketing-MIX Key to roof / correlation
matrix symbols
+
-
- Rock Climbing Harness
+ Positive / Supporting -
- Negative / Tradeoff
+ +
-
• The House of Quality: DIRECTION OF IMPROVEMENT
• Allows the definition of TECHNICAL
Performance
measures
Size of
range
Technical
details
PLANNING MATRIX
characteristics of a REQUIREMENTS
product by putting all
Our (existing) Product
Delta Rating X Weigh
the critical variables
into the decision-
Delta Rating
making process: CUSTOMER
REQUIREMENTS
– Technical
requirements Easy to put on 2 3 3 4 4 1.2 2.6 7
– Customer‟s Comfortable when hanging 5 4 4 2 5 1.2 8.4 22
requirements Fits over different clothes 1 1 1 5 2 1.2 1.2 3
– Differentiating Accessible gear loops 3 3 4 1 3 1.0 3.0 8
requirements Does not restrict movement 5 2 2 3 5 1.6 11.2 29
– Characteristics of Lightweight 3 3 2 5 3 1.0 3.0 8
competing products Safe 5 4 3 3 4 1.0 6.0 16
Attractive 2 2 2 5 3 1.2 2.6 7
Tech. Priority % of TOTAL 54 81.2 63 23.4 70.2 191.6 98.6 30 612 Total (100%) 38
PERCENTAGE OF TOTAL 9 13 10 4 12 31 16 5
Our product Y 174g 250 5 4 4mm 1 4 Key to interrelationship matrix symbols
Competitor A's product Y 193g 321 3 5 8mm 4 5 Strong interrelationship
Competitor B's product Y 157g 198 6 4 3mm 1 3 Medium interreltionship
DESIGN TARGETS Y 160g 250 8 6 4mm 2 4 Weak interrelationship 57
58. Process of Marketing Management EXERCISE Webbing Strength = Resistenze della tessitura
Marketing-MIX Key to roof / correlation
matrix symbols
Webbing Strength = Spessore del riempimento
The House of Quality: + Positive / Supporting Padding thickness = Spessore del riempimento
Exercise: Rock Climbing Harness - Negative / Tradeoff
A climbing harness is a piece of equipment used in certain types Buckles = Elementi in plastica ricurvi
of rock-climbing, abseiling or other activities requiring the use of
ropes to provide access and/or safety (eg industrial rope access,
working at heights, etc.). A harness is used to secure a person Gear loops = numero di giri sul gancio
to a piece of rope or an anchor point of some kind. DIRECTION OF IMPROVEMENT
Performance Size of Technical
In its simplest form a harness can be fashioned from a length of TECHNICAL PLANNING MATRIX
rope or a nylon tape sling tied round the waist and attached to measures range details
the rope, usually by means of a carabiner. More sophisticated REQUIREMENTS
Meets European Standards
harnesses exist in many different patterns, designed to give
greater comfort and security, and to provide more options for
Our (existing) Product
Delta Rating X Weigh
carrying equipment.
There are three main kinds of harnesses.
Delta Rating
Sit Harness
A sit harness comprises of a waist belt and two leg loops which CUSTOMER
are normally connected in the front of the hips either through a REQUIREMENTS
permanent webbing loop (sometimes called a belay loop) or
through the use of a carabiner.
These harness are the most commonly used for recreational
activities such as abseiling or rock-climbing as a wide range of Easy to put on 2 3 3 4
movement is afforded whilst still maintaining a good level of
safety. Comfortable when hanging 5 4 4 2
Chest Harness
A chest harness is worn around the shoulders. These harness Fits over different clothes 1 1 1 5
are not used on their own, but normally in conjunction with a sit
harness so as to provide an additional attachment point further Accessible gear loops 3 3 4 1
up the body. This additional attachment point can prove
valuable in some circumstances as it allows for better balance 5 2 2 3
when carrying a heavy pack (as the centre of mass is well below Does not restrict movement
the connection to the rope) or where the person in the harness
may be unable to maintain an upright position (due to injury or Lightweight 3 3 2 5
other influences).
Full-body Harness Safe 5 4 3 3
A full-body harness is most commonly used in industrial/rescue
situations. In essence is it the combination of a sit harness and a Attractive 2 2 2 5
chest harness which are permanently or semi-permanently
connected to each other. These harnesses normally offer a very TECHNICAL PRIORITIES 54 81.2 63 23.4 70.2 191.6 98.6 30 612
extensive range of attachment points allowing for safe Total (100%)
positioning in a number of positions.
Whilst these harnesses can be improvised as mentioned earlier, Tech. Priority % of TOTAL 9 13 10 4 12 31 16 5
it is recommended that a commercially produced harness be
used wherever possible. This is because there are stringent Our product Y 174g 250 5 4 4mm 1 4 Key to interrelationship matrix symbols
guidelines surrounding the manufacture of harnesses, and as
such a store-bought harness is safer and often more Competitor A's product Y 193g 321 3 5 8mm 4 5 Strong interrelationship
comfortable than an improvised one.
Competitor B's product Y 157g 198 6 4 3mm 1 3 Medium interrelationship
DESIGN TARGETS Weak interrelationship 58
59. Process of Marketing Management EXERCISE
Marketing-MIX Key to roof / correlation
matrix symbols
+ Positive / Supporting
- Negative / Tradeoff
• The House of Quality: DIRECTION OF IMPROVEMENT
• Exercise TECHNICAL
Performance
measures
Size of
range
Technical
details
PLANNING MATRIX
REQUIREMENTS
Delta Rating X Weigh
Delta Rating
CUSTOMER
REQUIREMENTS
Tech. Priority % of TOTAL Total (100%)
PERCENTAGE OF TOTAL
Our product Key to interrelationship matrix symbols
Competitor A's product Strong interrelationship
Competitor B's product Medium interrelationship
DESIGN TARGETS Weak interrelationship 59
60. Process of Marketing Management
Life Cycle Product Life Cycle
Introductory Growth Maturity Decline
Stage Stage Stage Stage Product
Category
Sales
Dollars
Product
Category
Profits
0
Time
60
61. Process of Marketing Management
Marketing Strategies for PLC
Life Cycle
INTRODUCTION GROWTH MATURITY DECLINE
Product Limited models More models Large number Eliminate
Strategy Frequent Frequent of models. unprofitable
changes changes. models
Distribution Limited Expanded Extensive. Phase out
Strategy Wholesale/ dealers. Long- Margins drop. unprofitable
retail distributors term relations Shelf space outlets
Awareness. Aggressive ads. Advertise. Phase out
Promotion Stimulate Stimulate Promote heavily promotion
Strategy demand.Sampling demand
Higher/recoup Fall as result of Prices fall Prices
Pricing development competition & (usually). stabilize at
Strategy costs efficient produc- low level.
tion.
61
64. Marketing Management Process
Resources Allocation
Managin Product Portfolio:
Resources Allocation Issues
- 4Ps are four investment forms
- How do I decide in which product/product
group/SBU to invest ?
- There are several method of resources
allocation:
- Graphical Portfolio Methods
- Mathematical Portfolio Methods
- Analytic Hierarchy Process
64
NoB
65. Marketing Management Process
Resources Allocation
Growth–Share Matrix
Stars:
Maintain share by investing earnings in
High STARTS QUESTION MARKS Price reductions, priduct refinement,
advertising and personal selling to
Market Growth Rate
discourage competitive entry.
Cash Cows:
Milk the cash and invest in marketing only
enough to maintain share.
Question Marks:
Investing in market segmentation
strategies, thereby reducing competition
and increasing share.
Or
Low CASH COWS DOGS Reduce investment and let the product
drop in DOGS.
High Low
Relative Market Share Dogs:
Move to Cash Cow by increasing the
market share if returns exceed the cost of
segmentation strategy.
Or
Drop the product.
65
NoB
66. Marketing Management Process
Resources Allocation
Directional–Policy Matrix
Weak Business Sector Prospects::
Company’s Competitive Capability
Phased Withrdawal
Disinvest Or Double or Quit Market Growth rate
Keep
Market Quality
Keep
Supply of raw material
Phased Or Try Harder
Average Withdrawal Grow
Environmental (regulatory)
aspects
Competitive Capabilities::
Growth
Cash Or Leader Market Position (MS%)
Generation Leader
Strong Product Capability
Unattractive Average Attractive Product research and
Business Sector Prospects development
66
NoB
68. Case Discussion
Club Med
- Divide in 4 groups
- Read againg the Club Med. Case
- Perform Situation Appraisal for Club Med. American
Challenge within the frame of the four „P”s of the
Marketing Mix
- Perform a Decision Analysis for Club Med. American
challenge with specific reference to Product and
Promotion.
- Answer few Additional Questions:
- Are all the 4-Ps taken in consideration by Martin?
- What id the Stage of Product Life Cycle in U.S. ?
- Preare your presentation on a flip-chart
68
